The Maharashtra Government finally repealed the Urban Land Ceiling Regulations Act (ULCRA) yesterday. Some of my quick thoughts on the impact of this move.
Positives
- Boost for transparency in a sector which badly requires it
- A probable end to land grabs by politicians and bureaucrats
- Easier access to Central Government's funds for Mumbai's infrastructure projects
- Longer-term real-estate supply now available, should aid stability for prices
- Red tape cut and therefore quicker clearances for real-estate projects
Negatives
- Potential for land-hoarding by owners, unless the Government gets serious about the proposed tax on vacant land on that part of land not being used for development by the owners
- No immediate impact on property prices, given that the land freed from ULCRA will take at least a couple of years to develop
- Not a definitive answer to the housing problem for Mumbai; although the Government has said that acquired land will be given to MHADA and MMRDA for low-cost housing, chances are owners will go to court on this. Besides Government sponsored housing schemes are prone to misuse as well as lack of transparency.
Update: Various newspapers are giving different numbers for the exact quantum of land released with the ULCRA repeal. Today's DNA, seems to make sense, so here's a summary.
Total Land declared surplus by the Govt since 1976=17,000 acres
Of which, land declared exempt=12,000 acres
Approx. balance surplus land to be used for low-cost housing=5,945 acres
Of which, land declared exempt (again)=1,827 acres
Which leaves a balance of=4,118 acres
Of which, Govt. orders acquisition of=3,500 acres
But acquires only=2,282 acres (challenged by owners and stayed by courts)
Actual land to be made available now=1,218 acres
Friday, November 30, 2007
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12 comments:
Hey, this is IndiansUnite from SSC India. This is definitely great news for the Mumbai metro project as it can now use the JNNURM funds to pay for the Viability Gap Funding. Whats the word on the street about the ground work starting in January?
Indiansunite - Don't be too sure that the Govt. will fund that viability gap. I'd read somewhere that JNNURM might not apply to public-private partnerships. Nothing's happening on the ground thanks to the fact the MMRDA is not able to get a 20acre plot it needs for a car-shed. More here. Thanks for the visit!
BA - I've read that PPP article you were referring to in the Mid-Day. However with the ULCRA gone, the land for the 30 acre plot has been declared surplus and can be claimed by the government. I am guessing that a speedy negotiation will take place with the concerned party.
*fingers crossed*
Indiansunite - fingers crossed indeed! Thanks for the comment, I've updated my latest post accordingly.
What does "Land exempt" mean?
Deepa - Good question. The ULCRA allows for certain lands which are exempt from the act, i.e. the Act won't apply to these lands. This is also the provision used by land-owners, and Government alike, to by-pass the ULCRA and be used for development in whatever manner they want. Thanks for the comment.
so much for the ulcra. another outdated act is the rent act. large chunks of property in mumbai (hate that name) are tied down because they are rented out or because people are too scared to rent out property. hence no development of old buildings takes place and house prices and rents are abnormally high for a third world city. why not have the housing brains come up with innovative solutions like incentives to develop old property and relocation of tenants and fast tracking of housing cases pending in courts?
also i think with the nano our roads will be more congested than before. the govt needs to urgently build multi storey parking lots, clear pavements of slums, shauchalayas, milk booths, std booths, temples, mosques and hawkers instead of regularising them like successive congress govts have done.
and we need to widen roads by removing all illegal encroachments. shabana azmi should be kept behind bars while this work is in progress or charged a heavy fine for interfering in good work for our city.
finally we need to have a law banning large tourist buses entering the city and obstructing traffic. people should board buses at bus stands outside city limits.
taxis that are parked on roads should be provided their multistorey parking lots and fined if they park elsewhere.
underground parking for mumbai seems like a joke with all the monsoon flooding.
work on roads goes at a snail pace. why cant more people or machinery be put on the job or better give the contract to americans or singaporeans who use the right equipment and do the job on time.
with two of the richest men in the world in this city, anything is possible!
bombayite - whoa, i think that might be too much order and discipline for Mumbaikars! Thanks for the comment!
Thanks for the repeal of the ulcra.Now when can we give a bigger thank you for the repeal of the rent act.We can then have a rent act which is fair to all involved.My suggestion is for the government to allow the landlord to pay the tenant one tenth of the current market price in the surrounding locality for the tenant to leave the premises.This is for buildings built prior 1960.For buildings built after 1960 the percentage of payment will increase in steps upto full payment for a house which is rented at present
DD - Amen to that! Thanks for the comment!
With an eye on the 2009 lok sabha and assembly elections the Congress party wants to regularize all slums that came up in Mumbai till 2000 and has also increased the flat size which slum dwellers will get from 225 sq.ft. to 270 sq.ft. . With the bounty that awaits them the slum dwellers who have built huts after 2000 are bribing officials from the rationing office, BMC dept., election office to make back-dated ration cards , bmc documents, voter id cards which will prove that their huts were built before 2000. The congress further wants to built in Mumbai five lakh rental homes of 160 sq.ft. each to accommodate more migrants and further burden the infrastructure and water supply. One news channel Sahara Samay Mumbai regularly pumps in reports in support of the slum dwellers. I am sure the editor & reporters of sahara samay mumbai are also living in slums afterall they will also get free flats. Vilasrao Deshmukh & Sharad Pawar don’t want slums in Latur and Baramati but they want to fill Mumbai with slums.
It is indeed hypocritical and unfortunate that the City of Bombay and the Province (Pradesh) of Maharashtra mollycoddle slum dwellers who are basically illegal encroachers on lands that do not belong to them, via the ‘Slum Rehabilitation Authority, even while it turns a blind eye to the plight of the ‘Kolis’ & 'East Indians', the aborigine natives of Bombay, whose lands and properties continue to be expropriated.
The government of Maharashtra considers it a necessity to legitimize and provide free housing to slum dwellers who have stolen other people's lands in broad daylight — with the connivance of the State and its functionaries — even as it rejects with contempt the rights of legitimate property owners, the Kolis & East Indians, who have been blasely expropriated, and refuses to compensate and rehabilitate them!!!
Anon - Thanks for the comment.
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